Thursday markets
The cattle complex continued its ascent, with live cattle futures reaching new contract highs.
“Thursday’s momentum is especially exhilarating as traders are largely making this move on their own as midday boxed beef prices are lower, and the cash cattle market still hasn’t seen any significant trade development,” ShayLe Stewart, DTN livestock analyst, wrote in her midday comments.
Live cattle futures closed higher, with the February contract up $1.05 to $201.10 and the April contract up 95 cents to $200.72.
Cash trade was light, with 1,104 head sold. Live steers sold for $202-207, and dressed steers sold for $322.
On the formula side, 37,500 head averaging 928 lbs. sold for an average of $324.60.
“This bull market has some age to it,” Cassie Fish, market analyst, wrote in The Beef. “It’s almost 5 years old if you start from the major low in April 2020. In the last four weeks, the cash fed cattle market has exploded higher. December averaged $194, and this week have traded from $202-206. Thus far the negotiated cash trade this week has been sparse, under 10k head. Cattle feeders are pricing cattle higher and packers are once again caught between the proverbial rock and hard place, thanks to a stagnating wholesale beef market.”
Today’s slaughter is estimated to be 123,000 head, 1,000 head above a week earlier.
Actual slaughter for the week ending Jan. 11 was 591,422 head. The average steer dressed weight was 962 lbs., 3 lbs. above a week earlier.
Boxed beef prices were lower on 163 loads, with the Choice cutout down $1.06 to $330.96 and the Select cutout down 78 cents to $317.21.
Feeder cattle
Feeder cattle futures also closed in the green, with the January contract up 2 cents to $277.07 and the March contract up $1 to $274.07.
The CME Feeder Cattle Index was up $1.12 to $278.18.
Corn futures were higher, with the March and May contracts up 5 cents to $4.89 and $4.99, respectively.
Kansas: Winter Livestock in Dodge City sold 1,655 head on Wednesday. Compared to the last auction, steers over 700 lbs. sold $7-10 higher and under 700 lbs. were not well tested. Heifers over 500 lbs. sold steady to $7 higher and under 500 lbs. were not well tested. Benchmark steers averaging 777 lbs. sold for $266-289, averaging $281.41.
Nebraska: Huss Livestock in Kearney sold 3,427 head on Wednesday. Compared to the last auction, steers under 800 lbs. sold unevenly and steers 800-900 lbs. sold $3 higher. Heifers under 700 lbs. sold unevenly and over 700 lbs. sold $3 higher. Benchmark steers averaging 722 lbs. sold for $292-307.75, averaging $302.02.
Oklahoma: OKC West in El Reno sold 5,321 head on Wednesday. Compared to the previous auction, feeder steers traded $3-8 higher. Feeder heifers sold mostly steady. Steer and heifer calves sold $5-8 higher. Benchmark steers 722 lbs. sold for $279-293, averaging $286.31. — Charles Wallace, WLJ contributing editor
